The beginning…
The discovery and development of oil & gas leads to the establishment of ANCs…
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ANCSA History
 In the Alaska Native
Claims Settlement Act
(ANCSA) of 1971,
Congress divided the
State of Alaska into 12
regions based on
common Native ancestry
 The Act awarded a
percentage of the land and
a portion of a cash
settlement, based on
population, to the Alaska
Native Corporation (ANC)
formed in each region
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ANCSA History
 The effort was a new hope to end
the cycle of lower 48 Indian
Reservation poverty and economic
dependence on the federal
 It was hoped that ANCs would
become economic engines for their
regions with local Natives as
shareholders and managers
 ANCs now own the land and use
settlement resources to create jobs,
educational opportunities, and
empower Native shareholders
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ANCSA Settlement Structure
 One Regional Corporation and many
village corporations were subsequently
formed in each designated region
 Each Regional Corporation selected a
name, began the process of
establishing the legal entity, enrolled
shareholders and planned for the future
 The Doyon Region is the largest in land area and takes up most of
the Interior of the State
 Congress also mandated that the Regions “share” 70% of their
annual income from subsurface and timber development with the
other regions
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Origins of ANC 8(a) Entities
 The late Senator Ted Stevens of Alaska advocated for
changes to SBA rules for minority-owned socially and
economically disadvantaged businesses under the 8(a)
 ANCs were authorized to form and develop small
companies to engage in government contracting in existing
markets – providing income and job opportunities for their
Native shareholders
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ANCs & 8(a) Program Participation
 The SBA’s 8(a) Business
Development Program is designed
to assist socially and economically
disadvantaged small businesses,
including ANC owned subsidiary
 The SBA helps ANC subsidiaries
build a strong foundational base for
economic development and long
term viability
 ANC subsidiaries continue to build capacity to identify, select, and
manage opportunities that help achieve the shareholder’s long
term vision
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Key ANC Responsibilities
 The relationship between the Federal
Government and an ANC is complex.
ANCs have dual missions of
generating corporate profits and
providing social benefits, including
employment opportunities, to
 ANCs are able to exercise a preference for American Indian and
Alaska Native applicants. As a result, Native companies
dedicate a substantial amount of time and expense to recruiting,
training, developing, and supporting Native employees
 For the 8(a) program, ANCs consider themselves stewards of
the trust relationship between the SBA and the Native
community. Outstanding performance is essential
 Adherence to the program rules, as well as the spirit and intent
of the 8(a) program, must be maintained at all times
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Current 8(a) Program Activity
 The 8(a) program continues to be a strong business development
tool for ANCs subsidiary companies. ANCs companies are
actively pursuing and executing contract work
 ANCs and tribes continue to maintain certain unique procurement
privileges – an important consideration, since proceeds from
tribally or ANC owned companies are used to benefit the entire
tribal membership, rather than individual owners
 Federal agencies continue to have strong incentives to set aside
work in the 8(a) program. Agencies continue to contract with
tribal concerns and ANC owned businesses via competitive
procurements and directed contracts
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Specific ANC 8(a) Advantages
 ANCs can own many small companies
that participate in the 8(a) Program –
rather than just one – because ANCs
provide benefits to thousands of Native
shareholders, not to just one owner or
 ANCs are largely exempt from $100
million overall federal cap for 8(a)
competitive and directed awards –
allowing ANCs to obtain larger
 ANCs are exempt from the requirement of being managed by socially and
economically disadvantaged owners, so Non-Natives can operate ANCowned 8(a)s.
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ANC 8(a) Compliance Requirements
ANC 8(a) companies must meet SBA size
requirements for small businesses (measured by a
three year rolling average of gross revenues or
average number of employees)
ANCs need to meet competitive mix and business
activity targets as required by the SBA. The long term
viability of the subsidiary is essential.
ANCs must meet specific NAICS code requirements
concerning ownership of subsidiary entities
ANCs must perform required percentages of
government contract work with their own forces
ANCs must win procurements with proven
performance and excellent work records
ANCs must comply with 8(a) Program reporting
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Subcontracting to ANCs
 Teaming with or Subcontracting to ANC entities can provide
significant benefits to other 8(a) or Small Business entities
ANCs offer greater financial resources…enhancing a team's
financial capability to perform and thus enabling the pursuit of larger
federal procurement opportunities
8(a)s usually have a singular or limited geographical presence,
ANCs 8(a)s generally have a wider geographical presence and thus
offer partners opportunities nationwide
ANCs have a wider range of core competencies and can offer
subcontracting opportunities across several entities
ANCs usually have a mature support organization capable of
supporting larger contracts activities
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Getting ready to work with ANCs
 Develop a Value Proposition that
is specific to your company –
What makes you great
 Recruit and retain a seasoned
and proven management team
 Ensure you’ve got all your certifications, licenses and
business qualifications in order
 Put financial resources in place. Get your cost structure
aligned with the competitiveness of the current marketplace
 Generate proven past performance on completed projects
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Ensuring the ANC relationship
 Develop relationships with key ANC subsidiary
business development and operations
 Look for specific opportunities to team on
upcoming projects – know how you can add
value and help the team win
 Be willing to take smaller roles on initial
projects to prove your ability to perform
 Perform the work in an outstanding fashion and
be a key reason for the project’s success
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How to do Business with ANC`s